Abstract

Most home stadiums/arenas of major-sport teams in the U.S. are
sponsored by large publicly traded companies. Using NFL data we
find that stock returns to the sponsoring firms are affected by the
outcomes of games played in their stadiums. Wins in Monday night
games generate next-day abnormal returns 50 basis points higher than
losses. The effect is 80 basis points in the post-season and when the
game outcome is unexpected. This does not revert over the next few
days. Outcomes of NFL games could serve as a reasonably exogenous
instrument for investor sentiment.